Solar Lease vs Buy: Which Is Right for Your Home?
Leasing is right for homeowners who want solar with no system purchase and no repair bills. Buying is right for owners who can use South Carolina's 25 percent state tax credit. The 2026 shift matters: the federal homeowner credit ended after 2025, so only leased, third-party owned systems still capture federal credit value.
Nature's Nergy works both sides of this choice. Leasing is the company's main service. Nature's Nergy also arranges solar financing for homeowners who want to own. So this guide has no reason to push you one way. Here is the honest side-by-side. You can also see every home solar option we offer in the Columbia area.
| What you compare | Lease | Buy |
|---|---|---|
| Upfront cost | No system purchase | $32,002 to $43,298 typical SC range before incentives (EnergySage, 2026) |
| Monthly cost | One set rate; Nature's Nergy yearly increases as low as 1 percent | Loan payment or cash |
| Federal credit in 2026 | System owner claims the Section 48E credit (leases/PPAs placed in service by end of 2027); competitive providers typically pass the value through as lower rates (EnergySage, 2026) | None; the 25D homeowner credit ended after 2025 (IRS) |
| SC state credit | No | Yes: 25 percent, capped at $3,500 per year (SC DOR, form TC-38) |
| Repairs | Free repairs and replacements, backed by a 25 year labor and parts warranty | The owner pays for anything outside equipment warranties |
Want real lease numbers for your own roof instead of a table? Get your free solar quote and see what your home qualifies for.
What is the real difference between leasing and buying solar panels?
In a lease, you pay a monthly rate for power from panels the solar company owns and maintains. In a purchase, you own the system, the South Carolina state tax credit, and the repair bills. That is the whole trade: leasing swaps ownership for a predictable payment and zero repair costs.
Nature's Nergy offers both paths. Our solar leasing program is the main service. For homeowners set on owning, the company also arranges financing, with rates that vary based on credit.
Neither path is "the smart one" for everyone. The right answer depends on your tax situation, your cash, and how long you plan to stay in the home. The next sections walk through each piece.
How did the 2026 federal tax credit change shift the lease vs buy math?
The old advice said buy, because the owner got a 30 percent federal credit. That credit is gone for new home installs. The One Big Beautiful Bill Act terminated the Section 25D Residential Clean Energy Credit. Per the IRS, the credit is not available for any property placed in service after December 31, 2025. The IRS also notes the credit follows the install year, not the purchase year, so a 2026 install gets nothing.
Leased systems are the exception. Third-party owned solar, meaning leases and power purchase agreements (PPAs), still qualifies for the Section 48E investment credit. Per EnergySage, these projects keep the roughly 30 percent credit if construction began before July 2026 or the system is placed in service by the end of 2027.
The homeowner never files for that credit. The system owner, the leasing provider, claims it. EnergySage notes that competitive providers typically pass that value through as lower monthly rates, so ask any provider directly whether and how it shows up in your rate. In 2026, a lease is the remaining way a home solar project can still capture federal credit value, and any pass-through shows up in your rate instead of on a tax return.
What is the downside of a solar lease?
The downside is that you do not own the system. You cannot claim South Carolina's state solar credit, because that credit only counts when you buy and own the system. And a bad escalator, the percentage your rate goes up each year, can eat your savings over 25 years.
That escalator deserves more attention than the starting rate. A low first payment with a steep yearly increase costs more over the full term than a fair rate that barely moves. Ask for the escalator in writing before you compare offers.
Escalator terms are where providers really separate. Nature's Nergy leases carry yearly increases as low as 1 percent, so the monthly rate stays predictable over the lease term. If a provider will not put the escalator, the warranty, and the repair terms in writing, walk away.
What does buying a solar system cost in South Carolina in 2026?
As of August 2026, EnergySage puts the average South Carolina home solar purchase at $2.59 per watt installed. The average 14.54 kW system runs about $37,650 before incentives, with a typical range of $32,002 to $43,298. Those are market figures, not a quote. Your roof, your usage, and your equipment all move the number.
Buying does earn a state credit that leasing cannot. South Carolina gives a state credit worth 25 percent of what you paid for a system you bought and installed. You claim it on form TC-38 (SC Code 12-6-3587). Per the SC Department of Revenue, the credit is capped at $3,500 a year, or half of what you owe the state that year, whichever is less. Anything left over rolls forward for up to 10 years. So a typical system's credit spreads over several tax years instead of arriving at once.
Few families pay five figures in cash, which is why financing a system you own exists as the middle path. You own the panels and the state credit, and you pay over time.
Who takes care of repairs when you lease vs when you buy?
Under a Nature's Nergy lease, repairs and replacements are free of charge. If a panel or a part fails, the company takes care of it, and the work is backed by a 25 year labor and parts warranty. You never budget for a broken inverter.
When you own the system, the repair bills are yours. Equipment warranties cover defects, but anything outside those warranties, including the labor to diagnose and swap parts, comes out of your pocket. Over 25 years on a roof, that risk is real money.
This is the quiet half of the lease vs buy decision. The tax math gets the headlines, but the repair question decides who owns the risk for the next two decades.
Is it hard to sell a home with leased solar panels?
It adds a step, not a wall. The buyer needs to accept the lease terms, or the lease gets handled at closing. A clean lease with a low escalator is easy for a buyer to accept. A lease with a steep escalator is not. That is one more reason the terms you sign today matter.
Plan for it up front. Ask us how a transfer works before you sign. You can start on our solar leasing page or call (803) 800-6999, and we will put the answer in writing.
What happens at the end of a 25 year solar lease?
At the end of a lease term, the common outcomes are to renew, have the system removed, or buy it out. Your agreement sets which options you get and at what price. Read the end-of-term section before you sign, not in year 24.
The warranty runs deep too. Nature's Nergy backs leased systems with that same 25 year coverage for labor and parts, so the equipment stays covered while you are on the lease. Your own lease term and end-of-term options are set by your agreement, so read that section closely.
The bottom line for 2026
Lease if you want solar with no five-figure purchase, no repair risk, and a rate that rises as low as 1 percent a year. Buy if you have the state tax liability to use South Carolina's 25 percent credit and you want the system as an asset. The federal credit no longer favors buyers, so the 2026 decision comes down to those two profiles.
Nature's Nergy is a family owned, licensed and insured residential solar company serving the Columbia SC area, and owner Michael Guilbert brings 10 years of solar experience to every roof he looks at. Request your free solar quote or call (803) 800-6999, and get your real lease numbers, in writing, before you decide anything.
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FAQ
Related questions
Is it worth it to buy out a solar lease?
Sometimes. Compare the buyout price to what you still owe in monthly payments and what the system is worth today. If the buyout costs less than the payments left, and the panels have many good years ahead, it can make sense. Your lease agreement lists the buyout terms, so read that section first and run the numbers before you decide.
What is the difference between a solar lease and a PPA?
A solar lease charges one fixed monthly rate for the system on your roof. A power purchase agreement, or PPA, charges you for each kilowatt hour the panels produce, so the bill moves with the sunshine. Both are third-party ownership: the solar company owns the equipment, and you pay for the power instead of buying the system.
Can you cancel a solar lease?
Not easily. A solar lease is a long-term contract, and the cancellation rules live in the agreement itself. Some contracts allow a buyout, and some charge fees to end early. Read the cancellation section before you sign anything, and ask the company to walk you through it in plain words. Good providers put every term in writing up front.